Cabinet Clears Massive Boost in MBBS and PG Seats Nationwide

On 24-9-2025, the Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved Phase-III of the Centrally Sponsored Scheme (‘CSS’) to significantly expand both postgraduate (‘PG’) and undergraduate (‘UG’) medical education capacity across the country.

Background:

The Government’s goal of achieving Universal Health Coverage (UHC) for India’s 1.4 billion citizens, especially those in rural, tribal, and underserved areas, requires a healthcare system that is both legally sound and structurally strong. A crucial element of this system is the availability of qualified medical professionals, which in turn depends on how effectively medical education institutions are established, regulated, and supported.

In the last ten years, there have been major progress in expanding its medical education network, now having 808 medical colleges, the highest number in the world, with a combined capacity of over 1.23 lakh MBBS seats.

From 2014 to 2024, more than 69,000 MBBS seats and 43,000 postgraduate seats were added, showing the impact of focused policy decisions and regulatory changes.

However, even with these progressive steps, many regions still struggle with limited access to healthcare services. To address these gaps, the Government has taken further legal and administrative steps. This includes setting up 22 new AIIMS under the Pradhan Mantri Swasthya Suraksha Yojana (‘PMSSY’), which offer advanced medical education and specialized healthcare. Additionally, the Medical Institution (Qualifications of Faculty) Regulations, 2025, have been introduced to make faculty recruitment more inclusive and based on practical skills.

These initiatives, led by the Ministry of Health & Family Welfare (MoH&FW), reflect a clear legal and policy commitment to building a stronger healthcare workforce and ensuring fair access to medical education and services across all parts of the country.

Key Takeaways:

1. Health Ministry has launched two major schemes driving this major expansion in medical education. These are:

   • Phase-III of the Centrally Sponsored Scheme (CSS) for PG Expansion

   • Extension of the Centrally Sponsored Scheme (CSS) for UG Expansion

2. The scheme will add 5,000 PG seats and 5,023 MBBS seats in government medical colleges, standalone PG institutes, and government hospitals by 2028-29. This expansion is designed to address the growing demand for skilled medical professionals and specialists across India.

3. The total financial outlay for the initiative is ₹15,034.50 crore, with the Central Government contributing ₹10,303.20 crore and State Governments contributing ₹4,731.30 crore. The cost ceiling per seat has been enhanced to ₹1.50 crore, ensuring high-quality infrastructure and training facilities.

4. This initiative will play a vital role in:

   • Expanding undergraduate medical capacity by increasing MBBS seats, giving more students the opportunity to pursue medical education in government institutions

   • Enhancing the availability of specialist doctors through the creation of additional postgraduate seats, ensuring a steady supply of experts in critical medical disciplines

   • Introducing new medical specialties across government colleges and hospitals, broadening the scope of advanced healthcare education and services

   • Strengthening the overall pool of qualified medical professionals to meet the growing healthcare demands of the country

   • Improving access to quality healthcare, especially in underserved and remote areas, by increasing the number of trained doctors and specialists

   • Leveraging existing infrastructure for cost-effective expansion of tertiary healthcare services, reducing the need for entirely new facilities

   • Promoting balanced regional distribution of healthcare resources across States and Union Territories, helping bridge gaps in medical access and equity

   • Building a more resilient health system that can respond effectively to both current and future health challenges through strategic capacity-building

5. The schemes are expected to deliver several important outcomes that will benefit both the healthcare sector and the broader economy:

   1. More students will gain access to medical education, helping meet the rising demand for doctors.

   2. Training quality will improve to match global standards, preparing graduates for international healthcare roles.

   3. A larger pool of specialists will position India as a hub for affordable healthcare, boosting foreign exchange.

   4. Healthcare access will expand in rural and remote areas, reducing regional disparities.

   5. The schemes will create jobs for medical professionals, faculty, paramedics, researchers, and support staff.

   6. A stronger healthcare system will improve emergency response and drive socio-economic growth.

   7. Infrastructure will be more evenly distributed across states and UTs, ensuring nationwide coverage.